Shifting strategy to lure local customers

Shifting strategy to lure local customers

Rudijanto, Contributor, Jakarta

With the departure of a significant number of Japanese
expatriates, the owners of Japanese restaurants, which have
mushroomed throughout Indonesia since the early '70s, have mostly
shifted their strategy, location and even name and cooking
concept to lure local customers.

Yoshiko restaurant, for example, decided to move from the
central business district (CBD) to the residential area in
Kebayoran Baru district. This change in location marks the
restaurant's shift in strategy and concept.

"We moved here five years ago. Previously, we were known as a
very exclusive restaurant with high-end customers. Since the
market is shrinking, we are now targeting more the middle-up
market, mainly young executives" said the restaurant's owner.

Not only that, Yoshiko restaurant even changed its name to
Strattoria Yoshiko. The inclusion of the Italian name means that
the restaurant's previous concept of pure and traditional
Japanese restaurant has changed into Japanese and Italian
restaurant.

The Yoshiko restaurant pampers the Japanese with truly
Japanese cuisine that reminds them of the food they had savored
at home.

The rapid spread of Japanese cuisine in Indonesia took place
in the early 1970s when Japanese investment started to flood
Indonesia.

Accompanying this huge investment, Japanese engineers and
supporting personnel came to stay in Jakarta. These tough and
hardworking people certainly need food that is suitable to their
taste.

But the good era when large numbers of Japanese investors and
executives stayed in the country ended when the economic
situation in Indonesia deteriorated following the economic
crisis. The shrinking business has forced many Japanese to leave
the country.

Currently, Jakarta has dozens of Japanese restaurants in major
hotels such as Crown Plaza and Le Meridien, and high-rise office
buildings such as Plaza Bapindo, Summit Mas, and Plaza BBD. This
choice of location around the CBD is not too surprising since
many Japanese expatriates work and stay in and around the CBD.

The shift in target market from Japanese to locals constitutes
a natural consequence of the dwindling Japanese customers. Almost
all Japanese restaurants in Jakarta are doing so as their
strategy to survive and tap new local customers.

"Previously, we are aiming at Japanese customers but due to
various economic and security reasons that have forced the
departure of the Japanese, we have changed our focus to develop
local customers," Mega Datulong of Manjiro Restaurant in
Jakarta's Crown Hotel said.

Other restaurants may still have bigger numbers of Japanese
customers, especially those Japanese visitors, but such
restaurants are starting to think of tapping the potential local
market.

"We want to develop more local customers now, especially the
middle-upper segment," noted Friska Eliana of Kyoka Restaurant
that is located at Plaza Bappindo I, another of Central Jakarta's
high-rise office buildings.

This shift in customer target has consequences in the pricing
policy as well as the menu of the restaurants in their effort to
adjust to local tastes.

"We offer special menu with lots of fried stuff such as fried
rice. We do this as we notice that many local customers prefer
fried food. With this special menu, we expect the locals to like
our restaurant," Friska added.

The adjustment to local taste is not only limited to offering
fried menu but even to the adjustment in ingredients as well.

Mega of Manjiro restaurant also admitted that her restaurant
has made several adjustments to accommodate local tastes. But she
emphasized that the restaurant still imported most of its
ingredients.

"There are adjustments, for instance in Miso Paste of which we
have reduced certain ingredient that gives it particular taste.
We reduce it because many local customers do not like its
flavor," said Mega.

Another Japanese restaurant in the CBD area, Basara, even
cooks certain Japanese menu in a way that suits its customers'
requests.

"We still offer a standard Japanese menu but we are open for
adjustments requested by our customers. After knowing the
standard Japanese menu, some locals prefer to add more sweet
taste or reduce certain taste. Thus, we accommodate their
requests," said Arief Herwanto of Basara restaurant.

Basara restaurant itself is the new name of Chikuyo Tei
restaurant. Located in Sudirman Road's Summit Mas Building, the
restaurant has changed its name in March last year as a sign in
the change of business concept and strategy. Basara is the brand
of a new Japanese franchiser.

While other Japanese restaurants feel the need to adjust their
menu to suit local customers, Rio of Stattoria Yoshiko believes
the opposite. Instead of shifting more to aim at local customers,
he does not feel the need to adjust the taste.

"We stick to the Japanese menu because we want to be different
with other Japanese restaurants here. Thus, there is no
adjustment in ingredients. All ingredients are authentically
Japanese ones. Japanese customers often told us that the taste of
food here is the same as what he ate in Japan," Rio said.

Since the prices of Japanese food are between Rp 65,000 up to
Rp 1 million per set-menu, those dining at Japanese restaurants
are among the well-to-do members of society, at least for local
customers.

The market is small. This has made the competition among
Japanese restaurants in attracting local customers very tough.
But all players seem not to be deterred by the competition.

"We are not afraid of the competition because we have our
specialty, for instance Unagi with imported eels from Japan,"
says Friska.

Grilled Unagi is a delicacy in Japan, popular not only for its
flavor but also for its stamina-giving properties. Unagi combines
a rich flavor with an appetizing texture, crisp on the outside
but tender on the inside.

With each Japanese restaurant having its own specialty,
customers have clearer option to select the restaurant to pamper
their love for Japanese food or, simply, for adjusted Japanese
food that suits their local taste.